02 — Capability · BC-1720.50
Loan Collections & Recovery
Bring delinquent borrowers back to current where possible, agree workable alternatives such as mortgage loss mitigation where not, and recover the most from loans and card balances that default, within debt collection and credit reporting rules. An enterprise chasing its own invoices is receivables collections.
- Loan Collections
- Delinquency Management
- Credit Recovery
In scope
- Delinquency outreach on loans, revolving lines and card balances
- Forbearance, modifications, workouts and mortgage loss mitigation
- Write-off, recovery, debt sale, repossession and foreclosure referral
- Credit bureau furnishing and corrections for loans and cards
Out of scope
- Collecting an enterprise's own receivables (see BC-250.30)
- Litigation strategy and outside counsel (see BC-150.40)
- Valuing and perfecting collateral before default (see BC-1720.40)
Decomposes into · 5
- BC-1720.50.10Delinquency OutreachContact borrowers who miss payments through the right channels at the right times, record promises to pay, and escalate accounts that stay behind.
- BC-1720.50.20Loan Workouts & Loss MitigationAgree deferrals, repayment plans, modifications, short sales and other alternatives to enforcement with borrowers in difficulty, including homeowners, within program and regulatory timelines.
- BC-1720.50.30Write-Off & RecoveryWrite off loans and card balances that meet policy, pursue recoveries in house or through agencies, and decide when to sell the remaining debt.
- BC-1720.50.40Repossession & Collateral LiquidationTake possession of collateral after default through lawful means, sell it, and apply the proceeds and any deficiency to the loan.
- BC-1720.50.50Credit Bureau ReportingReport the status of every loan and card account to credit bureaus accurately each cycle, and investigate and correct disputed entries within the required time.